Murphy USA Inc. operates a chain of retail stations offering motor fuel products and convenience merchandise. The company was founded in 2013 and is based in El Dorado, Arkansas.
MUSA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Murphy USA Inc. To summarize, we found that Murphy USA Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Murphy USA Inc, consider:
Murphy USA Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 24.55% of tickers in our DCF set.
Murphy USA Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 6.75. This coverage rate is greater than that of 66.88% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Murphy USA Inc has a reliance on debt greater than merely 23.84% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MUSA, try JW.A, SGA, RACE, CMCSA, and GPK.